RoomStore, Inc.

$15 MILLION DIP FACILITY

Transaction Overview

After suffering two years of losses attributable to a continued lull in housing starts, negative growth in consumer spending and increased competition, the Company filed a Chapter 11 Bankruptcy. As a result of the filing, the Company was seeking a Debtor-in-Possession facility to take out the post-petition DIP Lender and fund operations during the restructuring.

Opportunity

To provide the Company a Senior-Secured Revolving DIP Credit Facility that provided sufficient and increased liquidity in order for the Company to restructure its balance sheet and right size its operations. Consideration of other assets including; Real Estate and Ownership Interest(s) in other affiliated entities.

Salus Capital's Solution & Added Value

Salus Capital conducted diligence, underwrote, approved and funded the DIP Facility in a timely fashion while working with the existing Lender and the Company under the Bankruptcy Courts’ supervision. The new DIP facility maximizes the needed liquidity by leveraging all of the Company’s collateral including alternative asset classes. Our creativity and flexible structure allowed us to design a DIP Credit Facility that established a collaborative partnership and provides the necessary resources for the Company to successfully execute through the initial DIP period and to put them in the best position possible to execute a successful reorganization.